The leader investor Series C funding round has sued Ripple

U.K. investment company Tetragon Financial Group,  the lead investor of Ripple’s $200 million Series C, has sued the company after a recent complaint by the U.S. Securities and Exchange Commission, according to a report by Bloomberg.

Tetragon said it seeks to “enforce its contractual right to require Ripple to redeem” Series C preferred stock held by Tetragon and to block Ripple from using any cash or other liquid assets until the payment is made.

In a website’ss response, Ripple said: “In Ripple’s Series C investment agreement, there is a provision that if XRP is deemed to be a security on a go forward basis, then Tetragon has the option of having Ripple redeem their Ripple equity. Since there has been no such determination, this lawsuit has no merit. We are disappointed that Tetragon is seeking to unfairly take advantage of the lack of regulatory clarity here in the U.S. The courts will provide this clarity and we are very confident in our position.”

Following the lawsuit and Grayscale’s decision to ditch XRP, the cryptocurrency continues to trade in the red after being surpassed by Litecoin. The gap between the two cryptocurrencies continues to widen.

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